2014 Inter IKEA Group Annual Report Published

Inter IKEA Group reports positive revenue development and good strength for the IKEA Concept. The divestment of the 51% participation in Inter IKEA Centre Group A/S to the Ingka Group on 31st December 2014 contributed with an exceptional income and had a positive effect on the overall good result.

Most IKEA markets had good growth and the total Inter IKEA Group revenue increased by 9.5% (7.4% in 2013), to €3,129 million (€2,856 million). On a like for like, excluding the exceptional income, the net profit improved by €25 million or 4.8% compared to previous year. Worldwide IKEA retail sales increased by 7.7% to €30.8 billion. In 2014, exchange rate development had a negative effect on this figure. Adjusted for foreign exchange fluctuations, the growth was 5.5%.

“I am happy to report that we continue to see positive market development and that the IKEA Concept remains relevant to many people around the world. Strong results from our franchise division reflect the hard work of our co-workers, as well as the many IKEA franchisees’, co-workers”, says Søren Hansen, CEO, Inter IKEA Group.

Property rental income improved by 22.0% and investments in real estate continued. We also saw good performance in the Finance Division contributing to the strong result. In 2014, the Group sold its 51% participation in Inter IKEA Centre Group A/S (former Retail Centre Division) to Ingka Group. This transaction contributed positively with an exceptional income of €428 million.

“The purpose of Inter IKEA Group is to secure continuous improvement and a long life of the IKEA Concept. Investments in the property and finance divisions give us strength and stability to do just that. We will continue to work hard to improve all our businesses”, says Søren Hansen.

Key figures consolidated (under Lux GAAP)

Numbers in brief, EUR million

2014

2013

Total revenues

3,129

2,856

EBITDA

1,041

911

Net profit for the year

969*

516

Total assets

14,999

16,059

Shareholder´s equity (incl result of the year)

8,996

8,039

Equity ratio (%)

60%

50%

Co-workers (year average)

1,254

1,754

Financial year starting 1rst of January and closing 31st December

* Including an exceptional item of €428 m from sale of 51% ownership in Inter IKEA Centre Group A/S.